From: owner-canslim-digest@lists.xmission.com (canslim-digest) To: canslim-digest@lists.xmission.com Subject: canslim-digest V2 #667 Reply-To: canslim Sender: owner-canslim-digest@lists.xmission.com Errors-To: owner-canslim-digest@lists.xmission.com Precedence: bulk Content-Transfer-Encoding: quoted-printable X-No-Archive: yes canslim-digest Tuesday, August 3 1999 Volume 02 : Number 667 In this issue: RE: [CANSLIM] Starter Kit [CANSLIM] Non-MANSLIC "M" [CANSLIM] Non-MANSLIC "M" [CANSLIM] Acc/Dis Re: [CANSLIM] Acc/Dis [CANSLIM] Accessing the discussion canslim archives... [CANSLIM] DELL [Connie Mack] Re: [CANSLIM] DELL [Connie Mack] Re: [CANSLIM] DELL [Connie Mack] [CANSLIM] Biotech [Connie] Re: [CANSLIM] DELL [Connie Mack] Re: [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] [CANSLIM] DELL [Connie Mack] Re: RE: [CANSLIM] Starter Kit Re: [CANSLIM] Starter Kit [CANSLIM] DELL [Connie Mack] ---------------------------------------------------------------------- Date: Tue, 3 Aug 1999 19:02:33 +1200 From: "John Lynch" Subject: RE: [CANSLIM] Starter Kit Pinakin, I'll confine myself to sites etc rather than the CANSLIM questions because although I value the learning from WOMs book and like CANSLIM qualified stocks I am too impatient to wait for CANSLIM breakouts and will trade before that point. Others will need to speak to the results they get by properly following the system. Many of the bookmarkes below should be credited to Connie Mack Rae. All are free. - - www.bigcharts.com ... very flexible charting, one chart at a time. - - www.iqc.com ... flexible charting, lots at a time. I like this better than bigcharts because I have one chart with indexes, one with all the stocks I currently own and one with my watch list. - - quote.yahoo.com ... charts, news and historical data. Yahoo lets you look at a lot of charts on one page but lacks the MACDs, Stoichastics, Multiple MAs etc of Bigcharts and IQC. I use it mainly for news and to download historical/daily data for Metastock (a price analysis program -- not very CANSLIM). - - www.reesegroup.com gives a "CANSLIM" filter on stocks - - www.wwfn.com/crashupdate.html is kinda interesting, and - - www.clearstation.com if you want to explore your dark side! Regards, John - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Pinakin Patel Sent: Tuesday, 3 August 1999 02:04 To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Starter Kit John, Patrick Thanks for your comments guys. John, You say that your also a 'foreign' trader in the US market, so I presume that you also dont have access to things like the IBD? So how do you pick (research) your stocks? May I ask if you would be kind enough to give a quick note of the tools which would be useful (I know from the posts that a lot of the members are using tools such as BigCharts, I'm not sure if this is a freebie or subscription service). PS I am still interested in knowing how effective in your opnions CANSLIM is in practice! PPS Are there any other members out there who are using CANSLIM techniques to invest in other markets than the US? Regards Pinakin >>> "John Lynch" 08/01 2:04 am >>> Pinakin, As a Kiwi trading in the US (sometimes CANSLIM, more technical at present) I recommend using a broker like DATEK (my choice) or ETRADE who supports Internet trading. Sign on to DATEK online and print out the various forms. Mail these (including the W-8 form which lets the US Tax Department know where you'll be paying tax) to Datek. Then either wire or mail a check to Datek. At that point you can start trading. Regards, John - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Patrick Wahl Sent: Saturday, 31 July 1999 16:21 To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Starter Kit > I am slightly confused, it seems to me that some of you are day trading but I dont see how canslim techniques can be of any help here? Again I would be interested to find out what sort of tools you would require for this sort of trading! There is a small but voluble group of daytraders on the list, and it really does not have anything to do with CANSLIM. You should be aware that if you decide to follow this discussion it is a completely different discipline. Don't know how to help a UK guy with a broker questions. Only thought is to find a broker that allows you to place orders both via phone and over the internet, you can then dump orders in at night on the internet, or adjust stops and so on at home after doing your analysis. - - - - ! ! ! - ---------------------------------------------------------------------------- - - CRESTCo Ltd. The views expressed above are not necessarily those 33 Cannon Street. held by CRESTCo Limited. London EC4M 5SB (UK) +44 (0) 171 849 0000 http://www.crestco.co.uk - ---------------------------------------------------------------------------- - - - - - - ------------------------------ Date: Tue, 03 Aug 1999 06:15:56 -0400 From: postwhit@sover.net Subject: [CANSLIM] Non-MANSLIC "M" > Date: Tue, 3 Aug 1999 19:02:28 +1200 > From: "John Lynch" > Subject: RE: [CANSLIM] Non-MANSLIC "M? > > Jeffry, > > I'd be interested to know your predictions then. The rest of the year would > be interesting but the next three weeks would be sufficient. > > Regards, John Tomorrow, the market will either be up, down or unchanged. Same for three weeks out and the balance of the year. Who am I to tell the market what its'going to do over some finite period? Seems better to let the market tell me, no? Seriously, this was my comment on 7/21 and I don't see much in this market to change the tune, yet: "The spike down [in the VIX] near a two year low on Friday last showed extraordinary 'complacency/low level of emotional fear/bullishness', not seen since the beginning of the last major downward, intermediate term CANSLIM "M" phase, July '98. It may well mark the top of this intermediate term move from October '98 (the start of which was likewise marked by a VIX two year extreme). "With 4 distribution days in the Nasdaq (the clear leader index from the Oct. low), sentiment numbers out of whack for months, leadership long since faded away (the I-nuts), A/D in horrible shape, I'd be hoping for a good rally attempt here to move to cash in my weaker positions (if stops aren't in place and taking you out)." Not enough blood and fear in this market to expect classic bottoming action, maybe by October. But, you never know. Jeffry - - ------------------------------ Date: Tue, 03 Aug 1999 06:19:16 -0400 From: postwhit@sover.net Subject: [CANSLIM] Non-MANSLIC "M" > I intend to make a discipline of watching those price/volume signals in > the market. Do you keep a notebook?=20 > > Dan > > No, I lack the discipline for notebooks and such. Jeff - - ------------------------------ Date: Tue, 3 Aug 1999 05:59:40 -0700 (PDT) From: rolatzi Subject: [CANSLIM] Acc/Dis These are the latest Acc/Dis numbers from Robert. What are people's take on this indicator? It seems that while showing a little weakness it has held up better than the averages and has not signalled a sell as has the distribution and compression days of the averages. Thanks, Rolatzi 7/22/1999 1523 2915 1253 788 289 66% 4% 7/23/1999 1491 2964 1206 805 291 66% 4% 7/26/1999 1427 2947 1236 844 303 65% 4% 7/27/1999 1385 2946 1244 852 323 64% 5% 7/28/1999 1282 2915 1302 901 332 62% 5% 7/29/1999 1329 2875 1287 901 328 63% 5% 7/30/1999 1322 2869 1300 925 317 62% 5% 8/2/1999 1234 2835 1309 990 342 61% 5% _____________________________________________________________ Do You Yahoo!? Free instant messaging and more at http://messenger.yahoo.com - - ------------------------------ Date: Tue, 3 Aug 1999 07:21:57 -0600 From: Deepak Kapur Subject: Re: [CANSLIM] Acc/Dis Rolatzi, >not signalled a sell as has the distribution and compression >days of the averages. You are right but I seem to have forgotten the parameters which indicate a sell. Could you remind us all what the indicator (last two columns) parameters to stay in the market. Thanks for the great work. Deepak - - ------------------------------ Date: 3 Aug 1999 08:00:02 -0600 From: owner-canslim@lists.xmission.com (Jeff Salisbury) Subject: [CANSLIM] Accessing the discussion canslim archives... From time to time, CANSLIM members may wish to browse the discussion archives. This posting provides instructions on how to access the archives. Thanks to David Cameron for compiling the essentials of this message. Here are the two ways to access the archives: 1. The best way is to use your web browser. To browse the archives, point your browser to: http://www.xmission.com/~mcjathan/cgi/lwgate.cgi/CANSLIM/ You can do simple key-word searches on the archive by going to: http://www.xmission.com/~mcjathan/canslim/search.html 2. (Not as convenient) via email: Send an email to majordomo@xmission.com with the following as the body of your message: "index canslim". Then send a follow up email to request an old email from either the "archive" or "latest" directory. Note that your request must be in the body of your email. For example: "get canslim latest/001" will retrieve file "001" from the "latest" directory. "get canslim archive/v01.n066" will retrieve file "v01.n066" from the "archive" dir. Best Regards, Jeff Salisbury - CANSLIM list owner/admin - - ------------------------------ Date: Tue, 03 Aug 1999 10:50:23 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] DELL has just touched 39.5. I have made an initial buy at this price. It should be a relatively safe entry for a nice day trade or swing trade. Connie Mack - - ------------------------------ Date: Tue, 3 Aug 1999 09:54:27 -0500 (CDT) From: "Jason P. Butler" Subject: Re: [CANSLIM] DELL [Connie Mack] Same here - Except I made some options purchases. I've been wathcing DELL and trying to use the same indicators that Connie has been talking about. They've been fairly successful for me, so far:) [I made the options purchases earlier this morning - before the post by Connie]. Jason On Tue, 3 Aug 1999, Connie Mack Rea wrote: > DELL has just touched 39.5. I have made an initial buy at this price. > > It should be a relatively safe entry for a nice day trade or swing > trade. > > Connie Mack > > > - > > - - ------------------------------ Date: Tue, 03 Aug 1999 08:58:53 -0600 From: Ben Heffer Subject: Re: [CANSLIM] DELL [Connie Mack] What signs are you seeing on the MACD and volume. The signs are all dropping? Ben At 10:50 AM 8/3/99 -0400, you wrote: >DELL has just touched 39.5. I have made an initial buy at this price. > >It should be a relatively safe entry for a nice day trade or swing >trade. > >Connie Mack > > >- > > > 963-2428 home 945-9183 work Cyber Consultants-Training, Installations, Home Page Design mailto:bheffer@sopris.net ICQ# is 8736058 - - ------------------------------ Date: Tue, 03 Aug 1999 10:44:59 +0200 From: Johan Van Houtven Subject: [CANSLIM] Biotech [Connie] One of the few groups that is still doing fine is Biotech. [!BTK] Many all time highs in this group. I haven't checked CS fundamentals yet, but here are some of the leaders in the group and some charts with potential: AMGN HGSI ABGX ENZN QLTI MEDI CEPH LKST BGEN PDLI BCRX ILXO CORR GENZ I would not recommend a pure CANSLIMer to buy any of these, even if you had checked the fundies already, until the market gives a buy signal again (1% up on volume + more bearish sentiment). However this is an excellent time for a CANSLIMer to study. To study chartpatterns for example. And the first two on the list above have interesting charts IMHO: AMGN & HGSI. AMGN for the CSers, and HGSI for the momentum folks. Connie, if you find any of these charts interesting, would you please share how you would approach these stocks from your TA standpoint? - -- Johan - - ------------------------------ Date: Tue, 03 Aug 1999 09:07:03 -0600 From: Ben Heffer Subject: Re: [CANSLIM] DELL [Connie Mack] OK, I just saw it, I was watching the 5 minute chart and not the 1 minute chart. How does your blood pressure handle this ride? This can be quite an adrenalin rush to day trade. Ben At 10:50 AM 8/3/99 -0400, you wrote: >DELL has just touched 39.5. I have made an initial buy at this price. > >It should be a relatively safe entry for a nice day trade or swing >trade. > >Connie Mack > > >- > > > 963-2428 home 945-9183 work Cyber Consultants-Training, Installations, Home Page Design mailto:bheffer@sopris.net ICQ# is 8736058 - - ------------------------------ Date: Tue, 03 Aug 1999 11:39:35 -0400 From: Connie Mack Rea Subject: Re: [CANSLIM] DELL [Connie Mack] Ben-- Several reasons for entering. [1] Doubling Principle [if a principle can take place] took place at about 10:40. [2] MACD confirmed. [3] 3/7/10 gave a First Level Buy. [4] You have a previous low about eight days back at about 39.5. [5] You have also, a high in June at same level to act as support. I have taken a second position at 5/8ths. I will not accept a decline below 1/2 now. Either I make a few bucks, or I am out. Connie Ben Heffer wrote: > OK, I just saw it, I was watching the 5 minute chart and not the 1 minute > chart. How does your blood pressure handle this ride? This can be quite > an adrenalin rush to day trade. > Ben > > At 10:50 AM 8/3/99 -0400, you wrote: > >DELL has just touched 39.5. I have made an initial buy at this price. > > > >It should be a relatively safe entry for a nice day trade or swing > >trade. > > > >Connie Mack > > > > > >- > > > > > > > 963-2428 home > 945-9183 work > Cyber Consultants-Training, Installations, Home Page Design > mailto:bheffer@sopris.net > > ICQ# is 8736058 > > - - - ------------------------------ Date: Tue, 03 Aug 1999 13:06:08 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] I'm trying DELL again, at 3/8ths. Connie - - ------------------------------ Date: Tue, 03 Aug 1999 13:30:35 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] I'm in DELL. Some at a 1/4 and some at 3/8ths. 39.5 is breakthrough point. Some news came by that DELL just passed CPQ as largest PC maker. DELL is also pushing into the under-1000 dollar market with a $959 machine. This news might give the stock a short term kick for my trade. Connie Mack - - ------------------------------ Date: Tue, 03 Aug 1999 14:16:37 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] I am fully and fairly well positioned in DELL. I am keeping a mental stop of 3/8ths and will not take a dollar loss. Overall, the earlier trade that failed cost me only commissions. On my second try, because I got some stock at 1/4, I can exit at 3/8ths and have a flat day in which I neither made nor lost money. I haven't decided yet when I will begin to let some stock go. I usually let positions go in thirds or a half/quarter/quarter. Whatever your choice of lightening up is really unimportant; what is important is to lighten. In a way, today's trades thus far were near ideal. I.e., neither entry suffered an immediate set back. Therefore, I could set a mental stop almost immediately and get out without more than just a nick. Otherwise, I would have had to set a mental stop below my entry cost and play catch up--a position no trader (or investor) likes. The ideal trade would have been to enter without a set back and have made some money. My second trade now has that prospect: DELL is selling at 11/16ths. I'm up just a bit over 5/16ths on all positions. I will not take a loss on my second try either. The NASDAQ is healed some at 36 down. The DOW is up 20 some. Connie Mack - - ------------------------------ Date: Tue, 03 Aug 1999 14:45:46 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] Notice the doubling that took place at 2:00. [Use "Big" chart setting on BC.] Notice that there did follow a 10-15 minute correction. This correction is not dangerous. Price came off of a 60-minute double bottom just a short time earlier. The presence of that double bottom might let me stay in down to 39.25. What I'd like to see is for the correction following the doubling to retrace only half the distance from 39.75 and 39.25. That retracement is now taking place at 35.5. It would not be disastrous for price to make a triple bottom. But you have to be careful at the inception of a double or triple bottom; after the bottom, then you can relax a bit. It's the making of the bottom that requires scrutiny and patience. The MACD is flatting out at the trigger line [zero line]. This is okay. The Volume+ shows a decline of negative volume. This is promising. I'd say the prospects are good at 65% or so. Connie Mack - - ------------------------------ Date: Tue, 03 Aug 1999 15:33:59 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] This has been a good day for seeing how indicators ought to act. The doubling correction that was implied at 2:00 did take place. Then at 2:45 another doubling took place; this one implied a rise in price. This doubling took place at the same time the triple bottom was made. This was a fine and fortuitous conjunction of chart pattern and the Doubling Principle. Too, the 3/7/10 EMA gave a First and Second Buy. Just a few minutes later the MACD gave a buy; this time the buy was made through the trigger line; this ought to be read as a stronger signal that one made below the trigger line. Much has come together in the matter of a few minutes to encourage a turn around. I will be paying close attention to the last ten minutes of trading. DELL is notorious for a frenzy of trading just before the close. I will be thinking about letting one half of my positions go at 7/8ths. I am not unwilling to carry the other half overnight. I may not know what to do even as late as 3:50. I am not unaware of the doubling that began 10-15 minutes before 3:00. However, the MACD says to hold. There is no reason to have indicators if you will not do as they say. Connie Mack - - ------------------------------ Date: Tue, 03 Aug 1999 15:52:14 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] I've been close to dumping everything at 3/8ths. If you've been watching on BigCharts, you might superimpose the NASDAQ on the DELL chart. Because the NASDAQ is real time, you can infer a bit about where the stock is moving. Connie Mack - - ------------------------------ Date: Tue, 03 Aug 1999 10:52:10 +0100 From: Pinakin Patel Subject: Re: RE: [CANSLIM] Starter Kit Dan, As a start, thats about as perfect as perfect gets! I deeply appreciate the time and trouble you've taken in your response. There is a lot there to think about and explore, and its given me a very good idea of the type of investment 'framework' needed and how to go about implementing it in practice. It was also nice of you to give your experience of using CANSLIM. As I've not been trading actively for long, it has gives me a better perspective on how theories work in practice. Hopefully over time, experience and perspectives from kind people such as yourself and others I will be able a gain a better understanding of the correlation between theories and practice in the aim of not investing in a state of delusion! Kindest Regards Pinakin >>> "Dan Sutton" 08/03 12:54 am >>> Pinakin I think that at some point in most investor's lives, there comes a time when following the latest guru appears very attractive. Whether subscribing to their newsletter or simply following the philosophy espoused therein, it will soon become evident that investing principles and techniques developed by someone else are not the best avenue to investing success. Blindly following tip, suggestions and blackbox secrets will lose your money faster than bad luck at the blackjack table. CANSLIM is no exception. My experience with pure CANSLIM techniques has been less than a resounding success. Whether I read a chart wrong, placed a stop at the wrong point, missed a count on a distribution day or didn't spin around three times while holding my nose...there always seemed to be some arcane detail that I missed. I will admit that I may have not fully understood and applied all the proper analysis, but I did not have the free time to do all the work. After a few winning trades and an equal number of losing trades, I began to research other types of stock selection and investing. I have a rather large database in MSACCESS that I put all interesting investing articles into. As a new concept comes up, I will look through the database to compare that to what I have already saved from different writer's perspective.. The most important concept derived from all books, magazines and letters is to stick to your plan. Whether it be CANSLIM, HGS (High Growth Stock ala Ian Woodward), Motley Fools, Mutual Fund switching, buy and hold...whatever, stick to your plan. Do not jump around between different stock selection methods, or various entry and exit strategies. Stick to one and don't change. Your investment style and success is determined by a number of factors including your willingness to take risk. If you follow a guru, there will be times when you can't stomach the drawdown and you will make a change to the investing plan. At the risk of igniting a flame war, following is how I invest (even though it is not strictly CANSLIM) and the tools I use. Software:TELESCAN, Supercharts and TC2000 TELESCAN allows me to search all stock for certain fundamentals. TC2000 allows me to search all stocks for technical patterns and to download any price history quickly. Supercharts alerts me to the particular buy and sell signals that I have programmed in. Both TELESCAN and Supercharts allow extensive backtesting of your ideas. Broker: Waterhouse I trade online and only make decisions after the market close. I do not daytrade and do not make buy or sell decisions during market hours. All orders are keyed outside market hours. I have used Waterhouse for five years and am happy with them. I have had several favorable fills (less than the limit price I had keyed in), but as in many things in life...nothing is perfect. Stock selection: I construct a watch list using a number of criteria. Most have evolved from CANSLIM and HGS. I look for improving quarterly earnings, improving sales, good ROE, history of positive earnings surprises, history of increasing earnings, and a few other minor items. As these stocks appear I put them into a Watchlist in TC2000. The point being that purchase candidates are usually made far in advance of the actual purchase, and a candidate only makes the list if it passes the initial screening process. Making the list does not mean I will buy it. I currently have about 100 stocks in the list. Any one of them would probably fail a pure CANSLIM approach to be a candidate. I review the candidates to add or remove them on an ongoing basis, but since the basis for adding a candidate depends heavily on quarterly data, changes to the watchlist are not done on a daily basis. Buying and selling: After each evening's price download, I run the prices through Supercharts and have the program scan for a predetermined buy signal. The exact signal or trigger is a personal decision, Vic Sperandeo's 7 point trigger works well, Connie's EMA approach works well as do a number of other methods. I use one based on the Stochastic RSI, but again the exact method is a personal choice. The buy trigger needs to be an unemotional decision that you are comfortable with based on backtesting and your own willingness to accept risk and drawdown. There is no Holy Grail. Guru opinions: I do not subscribe to any newsletters, I do not listen to CNN, I do not look at any chat rooms, I do not solicit advice from a broker or any other vehicles that push somebody else's opinion. All specific opinions or recommendations from external sources only seem to muddy the water. Do all these things make me a great investor? Nope..all I want is an advantage over the house. How's that for a start? - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of Pinakin Patel Sent: Monday, August 02, 1999 8:04 AM To: canslim@lists.xmission.com Subject: RE: [CANSLIM] Starter Kit John, Patrick Thanks for your comments guys. John, You say that your also a 'foreign' trader in the US market, so I presume that you also dont have access to things like the IBD? So how do you pick (research) your stocks? May I ask if you would be kind enough to give a quick note of the tools which would be useful (I know from the posts that a lot of the members are using tools such as BigCharts, I'm not sure if this is a freebie or subscription service). PS I am still interested in knowing how effective in your opnions CANSLIM is in practice! PPS Are there any other members out there who are using CANSLIM techniques to invest in other markets than the US? Regards Pinakin >>> "John Lynch" 08/01 2:04 am >>> Pinakin, As a Kiwi trading in the US (sometimes CANSLIM, more technical at present) I recommend using a broker like DATEK (my choice) or ETRADE who supports Internet trading. Sign on to DATEK online and print out the various forms. Mail these (including the W-8 form which lets the US Tax Department know where you'll be paying tax) to Datek. Then either wire or mail a check to Datek. At that point you can start trading. Regards, John - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com]On Behalf Of Patrick Wahl Sent: Saturday, 31 July 1999 16:21 To: canslim@lists.xmission.com Subject: Re: [CANSLIM] Starter Kit > I am slightly confused, it seems to me that some of you are day trading but I dont see how canslim techniques can be of any help here? Again I would be interested to find out what sort of tools you would require for this sort of trading! There is a small but voluble group of daytraders on the list, and it really does not have anything to do with CANSLIM. You should be aware that if you decide to follow this discussion it is a completely different discipline. Don't know how to help a UK guy with a broker questions. Only thought is to find a broker that allows you to place orders both via phone and over the internet, you can then dump orders in at night on the internet, or adjust stops and so on at home after doing your analysis. - - - - - ---------------------------------------------------------------------------- - - CRESTCo Ltd. The views expressed above are not necessarily those 33 Cannon Street. held by CRESTCo Limited. London EC4M 5SB (UK) +44 (0) 171 849 0000 http://www.crestco.co.uk - ---------------------------------------------------------------------------- - - - - - - - ----------------------------------------------------------------------------- CRESTCo Ltd. The views expressed above are not necessarily those 33 Cannon Street. held by CRESTCo Limited. London EC4M 5SB (UK) +44 (0) 171 849 0000 http://www.crestco.co.uk - ----------------------------------------------------------------------------- - - ------------------------------ Date: Tue, 3 Aug 1999 17:44:20 +0200 From: "Bruce Feldman" Subject: Re: [CANSLIM] Starter Kit Some good points here. When you follow a guru and your stock goes down, it's invariably "your fault" but when it goes up it's because of the guru. Very convenient for the guru! And with CANSLIM there is so much open to interpretation -- especially regarding TA chart interpretations -- that, unfortunately, you can never completely get out of this box. OTOH, the point about "stand by your plan" has been very difficult for me, at least, for the simple reason that as I learn more about investing I like to implement what I learn; in fact it's important to do that in order to keep learning. One reason is, of course, that we can learn as much/more from our mistakes as our successes. Very difficult -- and perhaps undesirable -- to try to keep from growing just for the sake of sticking to a plan. Example: When I started, I used to get excited about the Motley Fools and tried a "Foolish Four" plan, which at the time included CAT and IP. After several months, both stocks were going nowhere. So what did I do? I started to read and learn more about the companies and about fundamental and technical analysis and about CANSLIM. Result?: I couldn't see any reason to hang on to those dogs anymore, and bailed out. Longer-term result?: CAT had a brief moment in the sun and then wen WOOF! WOOF! again; IP has still to crawl out of its hole. Was I wrong to ignore my new knowledge? I honestly don't know if we talk in terms of decades. But it's very hard not to translate new knowledge into action for the sake of sticking to a script. Bruce Feldman Prague, CR - ----- Original Message ----- From: Dan Sutton To: Sent: Tuesday, August 03, 1999 1:54 AM Subject: RE: [CANSLIM] Starter Kit > Pinakin > > I think that at some point in most investor's lives, there comes a time when > following the latest guru appears very attractive. Whether subscribing to > their newsletter or simply following the philosophy espoused therein, it > will soon become evident that investing principles and techniques developed > by someone else are not the best avenue to investing success. Blindly > following tip, suggestions and blackbox secrets will lose your money faster > than bad luck at the blackjack table. CANSLIM is no exception. My - - ------------------------------ Date: Tue, 03 Aug 1999 16:41:55 -0400 From: Connie Mack Rea Subject: [CANSLIM] DELL [Connie Mack] If we were to ask what it means to be saved, absolutely, sure enough we discover that just about everybody is damned. It is not clear if I am one of the saved or one of the damned. I closed out my entire position at 7/16ths, which means I made a little over a hundred dollars after commissions. When I tell my non-trading friends over dinner tonight about today, they will look upon me with a generalized sympathy and tolerant amusement. They will wonder if I have also been flying over 10,000 feet without my oxygen mask (as I often do because I don't smoke). Trading, for me, has a certain primitive dynamic quality like drawings in old caves, and is therefore not to be scorned. In a way trading seems like bartering, but at a hundred miles an hour. Today was a good day to learn about indicators working very short term, and working pretty much as they are intended to. That I didn't sell at 39.75 is of no matter. I never worry about money left on the table; it's the money that falls from the table into the black hole of loss that would worry me. Preservation of money is what matters most. You can always control losses: You get out. Half of my trades end up like today or with a few hundred dollars' loss. The other half puts money in the bank. I am entirely in cash now that I let my DELL go. I don't intend to buy anything until the indexes look better. I will trade DELL tomorrow. Today's close had a little bump in the last couple of minutes. The 39 7/16ths sale at the very close was not the 7/16ths that I sold at. I sold a few minutes before the close. In retrospect, I would have been safe to have kept half of my position overnight and have sold the remainder. But I don't live by retrospect. And I will sleep well. My dreams will not be of what-if but rather learning to live with my friends' "generalized sympathy and tolerant amusement." I have not forgotten about Johan's list of stocks he wanted me to look at. I'll look them over this evening. Connie Mack - - ------------------------------ End of canslim-digest V2 #667 ***************************** To unsubscribe to canslim-digest, send an email to "majordomo@xmission.com" with "unsubscribe canslim-digest" in the body of the message. For information on digests or retrieving files and old messages send "help" to the same address. Do not use quotes in your message.